Mike, a self-employed consultant, incurs the following business-related expenses in 2019: Actual automobile expenses $ 2,500 Moving
Question:
Mike, a self-employed consultant, incurs the following business-related expenses in 2019:
Actual automobile expenses | $ 2,500 |
Moving expenses | 4,000 |
Entertainment expenses | 1,500 |
Travel expenses (including $500 of business meals) | 2,500 |
Professional dues and subscriptions | 500 |
Total | $ 11,000 |
Mike earned $130,000 of gross income from his consulting business and had $12,000 of interest and dividend income in 2019 before any of the above expenses are deducted. He has $20,000 of itemized deductions. Mike is married and files a joint return with his wife, Ann, who has no income. a. What is the amount of Mike's deduction for business-related expenses for 2019? b. What is Mike and Ann's ACI and taxable income in 2019, assuming he is married and files a joint return, and ignoring the self-employment tax?
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Federal Taxation 2020 Comprehensive
ISBN: 9780135196274
33rd Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse